KLÉPIERRE: 6.3% LFL NRI GROWTH OVER 9M AND GUIDANCE INCREASE
Wednesday, Oct 23, 2024 1:35 am ET
1min read Klépierre, a leading shopping malls specialist focused on continental Europe, has reported robust operating performance in the first nine months of 2024. The company's proactive asset management and development initiatives have driven significant leasing tension and rental uplift, contributing to a 6.3% like-for-like (LFL) net rental income (NRI) growth over the period. This strong performance has led to an upgrade in the company's full-year guidance.
Klépierre's proactive approach to asset management and development has translated into growth in the volume of leases signed and a 3.0% rental uplift on renewals and relettings. The occupancy rate has increased to 96.2%, reflecting the affordable level of rents amid a 3.9% year-on-year increase in retailer sales and 2% growth in footfall. This has resulted in a net rental income of €520.1 million, up 4.9% year on year or 6.0% on a like-for-like basis.
The company's capital rotation strategy, including acquisitions and disposals, has also contributed to its NRI growth. Since January 1, Klépierre has closed the acquisitions of O’Parinor and RomaEst, two super-regional shopping malls, for a total amount of €238 million. In parallel, the company has disposed of non-core assets for a total amount of €106 million, above appraised values, for a blended EPRA Net Initial Yield of 5.5%.
Klépierre's strong balance sheet and improved credit metrics have played a crucial role in its ability to invest in high-return opportunities and drive NRI growth. The company's net debt to EBITDA reached a historically low level of 7.3x, the Loan-to-Value ratio was down 40 basis points over six months at 37.6%, and the interest coverage ratio stood at 8.2x. This has created significant balance sheet capacity for Klépierre to act as a net investor in accretive opportunities.
Klépierre's upgraded full-year guidance reflects the company's strong operational performance and improved credit metrics. The company now expects EBITDA growth of 5% and net current cash flow (NCCF) of €2.50-€2.55 per share. The strategic acquisitions and disposals, along with the company's strong balance sheet capacity, support this upgraded guidance.
In conclusion, Klépierre's proactive asset management and development initiatives, capital rotation strategy, and strong balance sheet have driven significant LFL NRI growth over the first nine months of 2024. The company's upgraded full-year guidance reflects its robust operating performance and improved credit metrics, positioning Klépierre well for continued success in the European shopping malls market.
Klépierre's proactive approach to asset management and development has translated into growth in the volume of leases signed and a 3.0% rental uplift on renewals and relettings. The occupancy rate has increased to 96.2%, reflecting the affordable level of rents amid a 3.9% year-on-year increase in retailer sales and 2% growth in footfall. This has resulted in a net rental income of €520.1 million, up 4.9% year on year or 6.0% on a like-for-like basis.
The company's capital rotation strategy, including acquisitions and disposals, has also contributed to its NRI growth. Since January 1, Klépierre has closed the acquisitions of O’Parinor and RomaEst, two super-regional shopping malls, for a total amount of €238 million. In parallel, the company has disposed of non-core assets for a total amount of €106 million, above appraised values, for a blended EPRA Net Initial Yield of 5.5%.
Klépierre's strong balance sheet and improved credit metrics have played a crucial role in its ability to invest in high-return opportunities and drive NRI growth. The company's net debt to EBITDA reached a historically low level of 7.3x, the Loan-to-Value ratio was down 40 basis points over six months at 37.6%, and the interest coverage ratio stood at 8.2x. This has created significant balance sheet capacity for Klépierre to act as a net investor in accretive opportunities.
Klépierre's upgraded full-year guidance reflects the company's strong operational performance and improved credit metrics. The company now expects EBITDA growth of 5% and net current cash flow (NCCF) of €2.50-€2.55 per share. The strategic acquisitions and disposals, along with the company's strong balance sheet capacity, support this upgraded guidance.
In conclusion, Klépierre's proactive asset management and development initiatives, capital rotation strategy, and strong balance sheet have driven significant LFL NRI growth over the first nine months of 2024. The company's upgraded full-year guidance reflects its robust operating performance and improved credit metrics, positioning Klépierre well for continued success in the European shopping malls market.
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